Agri‐food systems are transforming quickly in Africa. An important issue in the transformation process of agricultural production is the role of small farms. While many authors have looked at this question, one aspect that has received little attention is the role of small farms in the production of nutritious foods, an important topic given the low availability and relatively high prices of nutritious foods and the consequent low level of nutrition security in the continent. Using a unique large‐scale dataset from Ethiopia—one of the largest countries in Africa that has been transforming rapidly—we look at the production of vegetables and dairy products. We find a strong association between farm size and partial productivity measured in terms of output, value of outputs and profit per hectare/cow, with productivity twice to four times as high for larger farms. These farms have substantially higher input expenditures as well as differences in farm technologies compared to small ones. Our findings have important implications for the debate on the role of small farms and nutritional improvements in the continent.
{"title":"Farm size and agricultural productivity of nutritious foods: Evidence from Ethiopia","authors":"Hannah Ameye, Fantu Nisrane Bachewe, Bart Minten, Seneshaw Tamru","doi":"10.1111/1477-9552.12621","DOIUrl":"https://doi.org/10.1111/1477-9552.12621","url":null,"abstract":"Agri‐food systems are transforming quickly in Africa. An important issue in the transformation process of agricultural production is the role of small farms. While many authors have looked at this question, one aspect that has received little attention is the role of small farms in the production of nutritious foods, an important topic given the low availability and relatively high prices of nutritious foods and the consequent low level of nutrition security in the continent. Using a unique large‐scale dataset from Ethiopia—one of the largest countries in Africa that has been transforming rapidly—we look at the production of vegetables and dairy products. We find a strong association between farm size and partial productivity measured in terms of output, value of outputs and profit per hectare/cow, with productivity twice to four times as high for larger farms. These farms have substantially higher input expenditures as well as differences in farm technologies compared to small ones. Our findings have important implications for the debate on the role of small farms and nutritional improvements in the continent.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"145 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2025-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143030739","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Peter Birch Sørensen, Ulrik Richardt Beck, Asbjørn Kehlet Berg, Simon Christiansen, Cecilie Løchte Jørgensen, Jens Sand Kirk, Louis Birk Stewart, Peter Philip Stephensen
To meet their climate policy obligations towards the EU, some EU member states will have to adopt strict climate policies towards agriculture. Responding to this need, the Danish parliament recently decided to impose a tax on greenhouse gas (GHG) emissions from the country's livestock production. We develop a simple model of primary agriculture and its interaction with the food industry to illustrate the main economic mechanisms determining the impact of a unilateral tax on GHG emissions from domestic agriculture. To study the allocation effects of the GHG tax on agriculture and the impact on the wider economy over time, we then present a disaggregated dynamic simulation model of Danish agriculture, embedded in a large‐scale computable general equilibrium model. The model predicts that a large share of the cost increase induced by the tax will be shifted forward onto higher input prices in the food industry and ultimately onto consumers via higher food prices, but landowners will also bear a significant part of the burden through a fall in land prices. The GHG tax will induce a reallocation from animal to plant production, which would be even more pronounced in the case of a livestock‐specific tax as currently foreseen, and from conventional to organic farming. This will help to reduce the total emissions from agriculture, but the largest share of the emission cuts will stem from a fall in output, as there are still few low‐cost technical abatement possibilities in agriculture.
{"title":"The effects of unilateral climate policy towards agriculture: A case study of Denmark","authors":"Peter Birch Sørensen, Ulrik Richardt Beck, Asbjørn Kehlet Berg, Simon Christiansen, Cecilie Løchte Jørgensen, Jens Sand Kirk, Louis Birk Stewart, Peter Philip Stephensen","doi":"10.1111/1477-9552.12624","DOIUrl":"https://doi.org/10.1111/1477-9552.12624","url":null,"abstract":"To meet their climate policy obligations towards the EU, some EU member states will have to adopt strict climate policies towards agriculture. Responding to this need, the Danish parliament recently decided to impose a tax on greenhouse gas (GHG) emissions from the country's livestock production. We develop a simple model of primary agriculture and its interaction with the food industry to illustrate the main economic mechanisms determining the impact of a unilateral tax on GHG emissions from domestic agriculture. To study the allocation effects of the GHG tax on agriculture and the impact on the wider economy over time, we then present a disaggregated dynamic simulation model of Danish agriculture, embedded in a large‐scale computable general equilibrium model. The model predicts that a large share of the cost increase induced by the tax will be shifted forward onto higher input prices in the food industry and ultimately onto consumers via higher food prices, but landowners will also bear a significant part of the burden through a fall in land prices. The GHG tax will induce a reallocation from animal to plant production, which would be even more pronounced in the case of a livestock‐specific tax as currently foreseen, and from conventional to organic farming. This will help to reduce the total emissions from agriculture, but the largest share of the emission cuts will stem from a fall in output, as there are still few low‐cost technical abatement possibilities in agriculture.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"36 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2025-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968275","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this study, we assess the effect of the European Union's novel food regulations on firms' incentives to invest in such products. We adopt a conceptual framework based on real option value theory, which underpins an empirical analysis of a detailed dataset comprising 326 applications submitted under both the 1997 EU novel food regulation and its 2018 replacement. We investigate the dynamics of novel food applications under these regulations and disentangle the determinants of successful cases. Our results show a relatively stable number of applications over the years, with a spike after the introduction of the 2018 regulation, which sought to simplify and centralise the approval process. This upsurge can be interpreted as a reduction in the real option value of postponing investments, attributable to the introduction of a transitional regime and of 5‐year data protection measures. However, the new regulation did not shorten the authorisation process, with the expected benefits of centralisation compromised by operational bottlenecks and a lower chance of approval. Finally, we find that approvals under the 2018 regulation are more likely when applicants are private entities from non‐EU countries and have substantial experience with novel foods. Our empirical evidence suggests that the new regulation may be insufficient to speed up and streamline the novel food assessment process, which is inevitably constrained by EU food safety principles. This, in turn, may discourage future investments.
{"title":"The effect of the EU's novel food regulations on firm investment decisions","authors":"Alessandro Varacca, Claudio Soregaroli, Maximilian Kardung, Ilaria Espa, Ilaria Colombo, Beatrice Cortesi, Justus Wesseler","doi":"10.1111/1477-9552.12622","DOIUrl":"https://doi.org/10.1111/1477-9552.12622","url":null,"abstract":"In this study, we assess the effect of the European Union's novel food regulations on firms' incentives to invest in such products. We adopt a conceptual framework based on real option value theory, which underpins an empirical analysis of a detailed dataset comprising 326 applications submitted under both the 1997 EU novel food regulation and its 2018 replacement. We investigate the dynamics of novel food applications under these regulations and disentangle the determinants of successful cases. Our results show a relatively stable number of applications over the years, with a spike after the introduction of the 2018 regulation, which sought to simplify and centralise the approval process. This upsurge can be interpreted as a reduction in the real option value of postponing investments, attributable to the introduction of a transitional regime and of 5‐year data protection measures. However, the new regulation did not shorten the authorisation process, with the expected benefits of centralisation compromised by operational bottlenecks and a lower chance of approval. Finally, we find that approvals under the 2018 regulation are more likely when applicants are private entities from non‐EU countries and have substantial experience with novel foods. Our empirical evidence suggests that the new regulation may be insufficient to speed up and streamline the novel food assessment process, which is inevitably constrained by EU food safety principles. This, in turn, may discourage future investments.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"32 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142887957","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Julian Zeilinger, Jochen Kantelhardt, Andreas Niedermayr
Limiting the impact of climate change on agriculture is a major goal of the European Union. This requires the evaluation of farm‐level adaptation measures, available within the Common Agricultural Policy. We investigate how the adoption of soil conservation measures by farms in Austrian arable regions affects their economic performance. By applying an endogenous switching regression model to panel data, we find that climatic conditions significantly influence the decision on whether to adopt soil conservation measures. The net revenue of adopters is less sensitive to long‐term temperature and precipitation changes than for non‐adopters. The measures are profitable for a majority of farms. However, profitability is linked to baseline climatic conditions, with negative effects in cool, wet regions and significantly greater positive effects in warm, dry regions.
{"title":"Climate change and soil conservation","authors":"Julian Zeilinger, Jochen Kantelhardt, Andreas Niedermayr","doi":"10.1111/1477-9552.12620","DOIUrl":"https://doi.org/10.1111/1477-9552.12620","url":null,"abstract":"Limiting the impact of climate change on agriculture is a major goal of the European Union. This requires the evaluation of farm‐level adaptation measures, available within the Common Agricultural Policy. We investigate how the adoption of soil conservation measures by farms in Austrian arable regions affects their economic performance. By applying an endogenous switching regression model to panel data, we find that climatic conditions significantly influence the decision on whether to adopt soil conservation measures. The net revenue of adopters is less sensitive to long‐term temperature and precipitation changes than for non‐adopters. The measures are profitable for a majority of farms. However, profitability is linked to baseline climatic conditions, with negative effects in cool, wet regions and significantly greater positive effects in warm, dry regions.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"3 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142684168","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In light of the urgent need for farms to mitigate greenhouse gas emissions while maintaining economic viability, this paper analyses technical and environmental inefficiencies and their determinants based on a flexible multi‐equation by‐production stochastic frontier model, which accounts for the stochastic dependence between good and bad outputs via a copula function. An empirical application to Dutch dairy farms illustrates the distortions in the inefficiency scores and in the estimates of their determinants that occur when the dependence between good and bad outputs is ignored. The empirical results indicate a strong positive dependence between the good output (milk) and the bad output (methane emissions), which is particularly pronounced in the upper tail of the distribution. Notably, farms exhibit high efficiency in maximising their good output and minimising their bad output. Subsidies are negatively related to good output inefficiency but positively related to bad output inefficiency, while stock density exhibits a negative association with inefficiencies in both outputs. Disregarding output dependence leads to distortions in inefficiency estimates, particularly affecting the estimates for their determinants.
{"title":"Technical and environmental inefficiency measurement in agriculture using a flexible by‐production stochastic frontier model","authors":"Ioannis Skevas","doi":"10.1111/1477-9552.12619","DOIUrl":"https://doi.org/10.1111/1477-9552.12619","url":null,"abstract":"In light of the urgent need for farms to mitigate greenhouse gas emissions while maintaining economic viability, this paper analyses technical and environmental inefficiencies and their determinants based on a flexible multi‐equation by‐production stochastic frontier model, which accounts for the stochastic dependence between good and bad outputs via a copula function. An empirical application to Dutch dairy farms illustrates the distortions in the inefficiency scores and in the estimates of their determinants that occur when the dependence between good and bad outputs is ignored. The empirical results indicate a strong positive dependence between the good output (milk) and the bad output (methane emissions), which is particularly pronounced in the upper tail of the distribution. Notably, farms exhibit high efficiency in maximising their good output and minimising their bad output. Subsidies are negatively related to good output inefficiency but positively related to bad output inefficiency, while stock density exhibits a negative association with inefficiencies in both outputs. Disregarding output dependence leads to distortions in inefficiency estimates, particularly affecting the estimates for their determinants.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"11 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142610208","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Rainfall index insurance can enable farm households to manage production risk, but demand in developing countries remains low at market prices, in part because the insurance trigger may not correlate well with individual farm losses. Area‐yield crop insurance, which links payouts to average yield in a geographic zone, attempts to increase demand by more accurately targeting insurance payouts to production shortfalls. However, shifting from an exogenous weather‐based to an endogenous yield‐based index introduces concerns of asymmetric information, which can lead to market failures that constrain supply from providers. These features are inversely related: larger insurance zones inhibit index manipulation, but average yield is less informative about any individual plot. We quantify this tradeoff for maize in Ghana using a spatial yield model calibrated to match observed production. Insurers must demarcate zones of no more than 5000 farmers for area‐yield insurance to outperform weather insurance. The framework presented in this paper allows assessment of the relationship between index performance and asymmetric information in new crop insurance products.
{"title":"The economic potential for area‐yield crop insurance: An application to maize in Ghana","authors":"Ashish Shenoy, Mira Korb","doi":"10.1111/1477-9552.12618","DOIUrl":"https://doi.org/10.1111/1477-9552.12618","url":null,"abstract":"Rainfall index insurance can enable farm households to manage production risk, but demand in developing countries remains low at market prices, in part because the insurance trigger may not correlate well with individual farm losses. Area‐yield crop insurance, which links payouts to average yield in a geographic zone, attempts to increase demand by more accurately targeting insurance payouts to production shortfalls. However, shifting from an exogenous weather‐based to an endogenous yield‐based index introduces concerns of asymmetric information, which can lead to market failures that constrain supply from providers. These features are inversely related: larger insurance zones inhibit index manipulation, but average yield is less informative about any individual plot. We quantify this tradeoff for maize in Ghana using a spatial yield model calibrated to match observed production. Insurers must demarcate zones of no more than 5000 farmers for area‐yield insurance to outperform weather insurance. The framework presented in this paper allows assessment of the relationship between index performance and asymmetric information in new crop insurance products.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"132 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142536598","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study empirically analyses the effect of agricultural commercialisation on food spending and nutrition outcomes in Bangladesh. We examine whether exposure to exogenous climate shocks moderates these relationships. We construct individual‐level nutrition measures and time‐varying climate extremes using nationally representative panel data. To address endogeneity concerns, we use an instrument variable approach. Results show that commercialisation leads to an improvement in the broad nutritional profile of individuals. However, the commercialisation–nutrition linkage is weaker for households exposed to frequent climate shocks than those in climate‐resilient areas. Importantly, climate shocks dampen the positive nutritional impacts of commercialisation and exacerbate existing inequalities in the nutritional status within the households. Women and girls appear disproportionately vulnerable to the nutrition‐weakening effects of weather stresses in commercialised agricultural households. This highlights twin policy challenges: strengthening smallholders' resilience to escalating climate risks alongside promoting gender‐equitable, nutrition‐sensitive agricultural commercialisation.
{"title":"Commercialisation, exogenous shocks and nutrition: Evidence from smallholder farmers in Bangladesh","authors":"Jaweriah Hazrana, Ashok K. Mishra","doi":"10.1111/1477-9552.12616","DOIUrl":"https://doi.org/10.1111/1477-9552.12616","url":null,"abstract":"This study empirically analyses the effect of agricultural commercialisation on food spending and nutrition outcomes in Bangladesh. We examine whether exposure to exogenous climate shocks moderates these relationships. We construct individual‐level nutrition measures and time‐varying climate extremes using nationally representative panel data. To address endogeneity concerns, we use an instrument variable approach. Results show that commercialisation leads to an improvement in the broad nutritional profile of individuals. However, the commercialisation–nutrition linkage is weaker for households exposed to frequent climate shocks than those in climate‐resilient areas. Importantly, climate shocks dampen the positive nutritional impacts of commercialisation and exacerbate existing inequalities in the nutritional status within the households. Women and girls appear disproportionately vulnerable to the nutrition‐weakening effects of weather stresses in commercialised agricultural households. This highlights twin policy challenges: strengthening smallholders' resilience to escalating climate risks alongside promoting gender‐equitable, nutrition‐sensitive agricultural commercialisation.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"96 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142490648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Black gram and green gram are important pulse crops in India, but their production has faced fluctuations and stagnancy in yields over the last few decades. The Government of India has implemented several measures to enhance crop yield, including recommending and promoting the adoption of crop‐specific agronomic practices. However, there is limited empirical evidence on the determinants of the adoption of these practices and their impact on yield and income. In this context, this study analyses the determinants of the adoption of climate and plant management practices among black gram and green gram farmers and their impact on yield, crop revenue and net income across four major crop‐producing Indian states using a multinomial endogenous treatment effects model. Our analysis shows that information, contact with government extension services and access to off‐farm activities are crucial in adopting climate and plant management practices. The results strengthen the view that the adoption of knowledge‐intensive practices happens via formal information sources and plot‐level demonstrations. In addition, the results indicate that farmers who experience frequent crop loss exhibit an aversion towards adopting climate and plant management practices. While adopting these practices had a positive impact on crop yield and crop revenue, the impact on net income was observed only in the case of climate management.
{"title":"Adoption of agronomic practices and their impact on crop yield and income: An analysis for black gram and green gram in India","authors":"Poornima Varma, Julius Manda","doi":"10.1111/1477-9552.12617","DOIUrl":"https://doi.org/10.1111/1477-9552.12617","url":null,"abstract":"Black gram and green gram are important pulse crops in India, but their production has faced fluctuations and stagnancy in yields over the last few decades. The Government of India has implemented several measures to enhance crop yield, including recommending and promoting the adoption of crop‐specific agronomic practices. However, there is limited empirical evidence on the determinants of the adoption of these practices and their impact on yield and income. In this context, this study analyses the determinants of the adoption of climate and plant management practices among black gram and green gram farmers and their impact on yield, crop revenue and net income across four major crop‐producing Indian states using a multinomial endogenous treatment effects model. Our analysis shows that information, contact with government extension services and access to off‐farm activities are crucial in adopting climate and plant management practices. The results strengthen the view that the adoption of knowledge‐intensive practices happens via formal information sources and plot‐level demonstrations. In addition, the results indicate that farmers who experience frequent crop loss exhibit an aversion towards adopting climate and plant management practices. While adopting these practices had a positive impact on crop yield and crop revenue, the impact on net income was observed only in the case of climate management.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"44 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142489481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Farmland rental markets are important in production agriculture. Informal farmland rental markets have taken root in Chinese agriculture. However, farmland rental markets need to be transparent for increased efficiency and smooth functioning. This study uses three waves of nationally representative panel data and a difference‐in‐differences framework to examine the effect of China's Land Transfer Service Centers (LTSCs) on market‐oriented farmland transfers. The result indicates that LTSCs enhance farmland transfer marketisation, encouraging landowners to rent their land to large‐scale operators, engage in fixed‐term contracts and charge pecuniary rents. However, the LTSCs' “discrimination” against smallholders may limit their impact on the overall market. Additionally, LTSCs have weaker effects in villages with large clans and stronger effects in villages with bank outlets. The results illustrate the potential value of intermediary service organisations (ISOs) in land rental markets.
{"title":"From informal farmland rental to market‐oriented transactions: Do China's Land Transfer Service Centers help?","authors":"Pengfei Fan, Ashok K. Mishra, Shuyi Feng, Min Su","doi":"10.1111/1477-9552.12615","DOIUrl":"https://doi.org/10.1111/1477-9552.12615","url":null,"abstract":"Farmland rental markets are important in production agriculture. Informal farmland rental markets have taken root in Chinese agriculture. However, farmland rental markets need to be transparent for increased efficiency and smooth functioning. This study uses three waves of nationally representative panel data and a difference‐in‐differences framework to examine the effect of China's Land Transfer Service Centers (LTSCs) on market‐oriented farmland transfers. The result indicates that LTSCs enhance farmland transfer marketisation, encouraging landowners to rent their land to large‐scale operators, engage in fixed‐term contracts and charge pecuniary rents. However, the LTSCs' “discrimination” against smallholders may limit their impact on the overall market. Additionally, LTSCs have weaker effects in villages with large clans and stronger effects in villages with bank outlets. The results illustrate the potential value of intermediary service organisations (ISOs) in land rental markets.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"20 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142328699","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Cooperation amongst natural resource users is key to manage ecosystems sustainably and achieve environmental goals proposed by policy and regulations. This paper focuses on the impact that livestock farming can have on the quality of a water body and investigates farmers' willingness to cooperate to preserve water quality under two different sources of uncertainty and four different degrees of uncertainty. The first source relates to the level of water quality that must be guaranteed in a river catchment to avoid irreversible deterioration of aquatic ecosystems (threshold uncertainty, i.e. with catastrophic consequences). The second source relates to the financial losses that farmers will experience in the long run if they fail to cooperate (impact uncertainty). To this end, a lab‐in‐the‐field experiment was conducted with livestock farmers of Northern Ireland. A local public good game with threshold uncertainty was framed around an agri‐environmental scheme designed to create ungrazed buffer zones for water quality preservation. Results indicate that uncertainty generally hampers farmers' cooperation and the provision of information geared to reduce uncertainty enhances it. Impact uncertainty has a milder negative impact on cooperation than threshold uncertainty. Risk preferences and probability weighting do not influence cooperation, while loss aversion has an influence on cooperation.
{"title":"Farmers' cooperation to improve water quality under scientific uncertainty: A lab‐in‐the‐field experiment","authors":"Simone Angioloni, Simone Cerroni","doi":"10.1111/1477-9552.12614","DOIUrl":"https://doi.org/10.1111/1477-9552.12614","url":null,"abstract":"Cooperation amongst natural resource users is key to manage ecosystems sustainably and achieve environmental goals proposed by policy and regulations. This paper focuses on the impact that livestock farming can have on the quality of a water body and investigates farmers' willingness to cooperate to preserve water quality under two different sources of uncertainty and four different degrees of uncertainty. The first source relates to the level of water quality that must be guaranteed in a river catchment to avoid irreversible deterioration of aquatic ecosystems (threshold uncertainty, i.e. with catastrophic consequences). The second source relates to the financial losses that farmers will experience in the long run if they fail to cooperate (impact uncertainty). To this end, a lab‐in‐the‐field experiment was conducted with livestock farmers of Northern Ireland. A local public good game with threshold uncertainty was framed around an agri‐environmental scheme designed to create ungrazed buffer zones for water quality preservation. Results indicate that uncertainty generally hampers farmers' cooperation and the provision of information geared to reduce uncertainty enhances it. Impact uncertainty has a milder negative impact on cooperation than threshold uncertainty. Risk preferences and probability weighting do not influence cooperation, while loss aversion has an influence on cooperation.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"22 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142328748","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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